Quintain’s shares dropped sharply today prompting an announcement that it was still attempting to raise equity.

Shares in the listed developer and fund manager fell 44% to 8.5p on fears that the company was struggling to raise much-needed new equity.

However, the company said it was still pursuing 'an equity capital raising', although it added that 'no assurance can be given' that it would be successful.

The company first said on 18 March that it was considering equity raising.

Following the announcement it was widely expected to ask investors for £100m to shore up its balance sheet and avoid breaching its loan covenants.

It also said three weeks ago that it had agreed an extension to the covenants on its £620m debt facilities so it could elect to extend its gearing from 110% to 150%.